Buying A Car
Money paid upfront when purchasing a car.
What is a down payment?
Money borrowed to buy a car or house.
What is a loan?
Loans with unfair or abusive terms.
What is Predatory lending?
A plan for how to spend and save money.
What is a budget?
Borrowing money and then paying it back later with interest
What is Credit?
This document tells buyers about accidents, repairs, and ownership.
What is a vehicle history report?
A loan used specifically to buy a car.
What is an auto loan?
Fast cash, emergencies & no other options.
Why people use them?
Money earned from a job or allowance.
What is income?
Revolving, installment, and open credit
What are the 3 types of credit?
A higher score usually helps buyers get lower interest rates .
What is a credit score?
Same interest rate the whole time and predictable payments.
What is a Fixed-Rate Mortgage?
A very high interest rate that makes loans hard to repay.
What is a high APR?
Money spent on needs like food, gas, and bills.
What are expenses?
You can borrow repeatedly up to a limit (Credit cards)
What is Revolving Credit?
The amount a car loses in value over time.
What is depreciation?
Rate can change over time & payments can increase.
What is an Adjustable-Rate Mortgage (ARM)?
Short-term, very high-interest loans can trap you in a cycle of debt.
Payday Loans
Saving money for unexpected costs like car repairs.
What is an emergency fund?
Fixed payments over time (Auto loans, mortgages )
What are Installment Credit?
The amount you pay out of pocket before insurance helps cover costs.
What is a deductible?
The percentage rate that determines how much interest you pay.
What is an interest rate?
Borrowing more money than you can realistically afford to repay.
What is overborrowing?
The difference between income and expenses.
What is profit or net income?
Must be paid in full each cycle (Utility bills )
Open Credit